The second picture its the part 1 i need part 2 and 3
MAC 7200 Advanced Managerial Accounting Budgeting Project Background Information Provided by Your Client Four Seasons has a hotel in South Carolina. For this hotel, management expects occupancy rates to b 95% in December, January and February: 85% in November, March and April, and 70% the rest of the year. This hotel has 325 rooms and the room rental is $250.00 per night. Of this, on average 10% is received as a deposit the month before the stay, 60% is received in the month of the stay, and 28% is collected the month after. The remaining 2% is never collected. Most of the costs of running the hotel are fixed. The variable costs are only $30.00 per occupied room, per night. Fixed salaries (including benefits) run $400,000 per month, depreciation is $350,000 a month, other fixed costs are $120,000 per month, and interest expense is $600,000 per month. Variable and salaries are paid in the month they are incurred, depreciation is recorded at the end of each quarter, other fixed costs and salaries are paid in the month they are incurred, and interest is paid semi- annually each June and December. Client's Concern: The client is aware that net income does not equal cash flow and wants to make sure that the business will generate enough cash to meet all of its obligations. Project Part 1: The client wants your accounting firm to prepare a monthly cash budget for this Four Seasons hotel for the entire year. For simplicity, assume that there are 30 days in each month. Project Part 2: The client wants your accounting firm to prepare a traditional income statement (profit and loss statement) using the information above. Project Part 3: A. The client wants to know: How much would the hotel's annual profit increase if occupancy increased by 5 percentage points during the offseason (that is from 70% to 75%) in each month from May to October. The client wants to know the contribution margin. The client wants to know the breakeven point for the hotel. B. C. AI January ebruary march gust september no. of rooms 2s0 S 5 250 $ no. of cash collection budeet nuary ebruary mach 12 315.625 S 2,315,625 S 2,071,875 S 2,071.875 S 1,70 6,25) s 1, 706, 250 s 1.706,250 s 1,706250 $ 1,706,250 s 1.706,250 S 2,071175 S 2,315,625 231563 207.188 $ 207-188 $170.625 S 170,625 $ 170,625 S 170,625 S 170,625$ 170,625 S 207,188 $ 231363 231,563 1,023,730 $1.243 125 $1.359,375 S 1,389,375 $1.359,375 $1,243,125 $1 243.125 $1023,730 $1.023 750S s 648,375|$648,375|$ 64.3|$580.125|$580-25|S477750|$472750|$477,750|S4" 3,750 $1.023, 750 1023 6 total cash collection 2,269,313 $2.244 938 $2,098 688 $1.993,875 $1,774,500 $1,672 125 $1,672,125 $1,672,125 $ 1672 125 $1,708,688 $1.952,438 $2.201,063 cash disbursement anuary february march august september 277,8$ 277 875 S 24,625 20 750 $.20 4750 400,000 120,000 120,000 120,000 120,000 120,000 120,000 120,000 120,000 120,000 $ 248 625 20 750 $ 104 750 204,750 S 204.750 400,000 400,000 400,000 variable expenses 248 625 S 277 875 fixed salaries other fixed 400,000 400,000 400,000 400,000 4 $ 120,000S 120,000 120,000 3,600,000 768625 4.197875 23 total cash disbursement 97.875 797.875 768,625 768,625 724,730 $4,124,750 5 724,750 $ 724.730 5 724750 5 724750 A25 cash budget anuary februerymarchapri september octobernovember december opening balance 2.269,313 $2,244 938 52,098,688 51,993,875 $1,774,00 51,672,125 $1,672,125 1.672,125 $ 1.672,125 $1.708,688 $1,952,438 $2,201,063 $ 724,750 $ 768,625 $4.397,87 cash collection total cash disbmntS 797,875 797.875 768,625 768,62 closing balance 724,75 $4,324.70S 724,730 S 724,75 724, 1471438 $2.918,500 $4,248.563 $5473,813 $6523,563 $3,870.938 $4.818,313 S 813 $6,684 januaryfebruary march aprilmay 35 204,750 204,750 400,000 400.000 S 400,000 120,000 277,87 248,625 S 277,875 277.875 400,000 400.000 400,000 is 400,000 fixed salaries other fixed costs 400,000 400,000 400,000 S 4 600,000 S 600,000 s 600,000s 600,000 S $1,050,000 SI 324,7%) $2.374,750-$1.1M750 to loper ting expenses S L392875 $ 1.397.875-$2.41S625 $1.368 625 SLI24.730 S 2.31.750 SL324,750 SLOSAS SLA4787 42
